Transforming hot-spring cities into innovation hubs: a comparative cluster-based analysis of Beppu, Bath, and Vichy

Takayuki Kubo and Akira Yamasaki

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Hot-spring resources are abundant in Japan, yet they have not consistently generated broad-based regional prosperity. This study examines the conditions under which hot-spring cities can evolve from tourism-dependent destinations into higher-value urban service clusters. It compares Beppu (Japan) with Bath (UK) and Vichy (France), two benchmark spa cities included among the Great Spa Towns of Europe. Using a qualitative comparative case study supported by descriptive statistical evidence and location quotient profiles, the study shows that outcomes depend less on the volume of hot-spring resources than on institutional coordination, brand credibility, and the integration of wellness, heritage, healthcare, education, and related service industries. Bath and Vichy demonstrate how relatively limited hydrothermal resources can be converted into more durable and higher-value urban development through coordinated governance, long-stay demand, and clear quality signalling. By contrast, Beppu retains exceptional resource endowments and a strong domestic tourism base but remains dependent on volume-based tourism and shows weaker cross-sector orchestration. The study argues that the developmental potential of hot-spring cities should be understood as a place-based institutional and spatial process rather than an automatic consequence of resource abundance. Policy implications are presented for Beppu and for Japanese hot-spring cities generally.

Keywords: Bath; Beppu; hot-spring cities; industrial cluster; location quotient; tourism and regional development; Vichy (search for similar items in EconPapers)
JEL-codes: N0 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2026-09-30
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Published in Regional Science Policy and Practice, 30, September, 2026, 18(9). ISSN: 1757-7802

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